Which Is Not a Disadvantage of a Qualified Pension or Profit

question 34

Multiple Choice

Which is not a disadvantage of a qualified pension or profit sharing plan?

• A) The employer must make contributions for most employees on a nondiscriminatory basis.
• B) There are a number of limits on contributions to defined contribution plans and on benefits that may be paid under defined benefit plans.
• C) Qualified plans have higher startup and administrative costs than nonqualified plans.
• D) Contributions are immediately deductible by the employer.
• E) All of the above are advantages.

Distinguish between internal and external analyses in strategic planning and their impacts on identifying competitive advantages.

Understand the importance and components of a business code of ethics.

Comprehend the laws and regulations that govern business activities.

Identify and explain the forces of competition within industries.

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Definitions:

Pure Expectations Hypothesis

A theory that suggests that the interest rates on long-term bonds will equal an average of current and future short-term interest rates.

Yield Curve

A graphical representation showing the relationship between the interest rates on debts of different maturities, typically of government bonds, highlighting investors' expectations for future interest rates and economic conditions.

Liquidity Premium

An additional return that investors demand for holding securities that are not easily convertible into cash without a significant loss in value.

Holding-Period Return

The total return received from holding an asset or portfolio of assets over a specified time period, often measured as a percentage.